Ares Capital Stock Buy Hold or Sell Recommendation
| ARCC Stock | USD 21.78 0.01 0.05% |
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Ares Capital is 'Strong Hold'. Macroaxis provides Ares Capital buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding ARCC positions.
Check out Ares Capital Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For information on how to trade Ares Stock refer to our How to Trade Ares Stock guide. In addition, we conduct extensive research on individual companies such as Ares and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Ares Capital. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in main economic indicators.
Ares |
Execute Ares Capital Buy or Sell Advice
The Ares recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Ares Capital. Macroaxis does not own or have any residual interests in Ares Capital or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Ares Capital's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Hold
Market Performance | Good | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Moves indifferently to market moves | Details | |
Investor Sentiment | Interested | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Ares Capital Trading Alerts and Improvement Suggestions
| Ares Capital currently holds 11.94 B in liabilities with Debt to Equity (D/E) ratio of 1.27, which is about average as compared to similar companies. Ares Capital has a current ratio of 0.93, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Note, when we think about Ares Capital's use of debt, we should always consider it together with its cash and equity. | |
| On 30th of September 2024 Ares Capital paid $ 0.48 per share dividend to its current shareholders | |
| Latest headline from thelincolnianonline.com: Ares Capital Co. Stock Position Raised by Stonebridge Financial Planning Group LLC |
Ares Capital Returns Distribution Density
The distribution of Ares Capital's historical returns is an attempt to chart the uncertainty of Ares Capital's future price movements. The chart of the probability distribution of Ares Capital daily returns describes the distribution of returns around its average expected value. We use Ares Capital price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Ares Capital returns is essential to provide solid investment advice for Ares Capital.
| Mean Return | 0.11 | Value At Risk | -0.96 | Potential Upside | 0.94 | Standard Deviation | 0.67 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Ares Capital historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Ares Stock Institutional Investors
| Shares | Wells Fargo & Co | 2024-06-30 | 3.3 M | Jpmorgan Chase & Co | 2024-06-30 | 3.3 M | Ubs Group Ag | 2024-06-30 | 2.3 M | Sound Income Strategies | 2024-09-30 | 2.2 M | Stifel Financial Corp | 2024-06-30 | 2.1 M | Two Sigma Advisers, Llc | 2024-06-30 | 2.1 M | Allen Investment Management Llc | 2024-09-30 | 2.1 M | Progeny 3, Inc. | 2024-09-30 | 2.1 M | Ares Management Llc | 2024-06-30 | 2.1 M | Morgan Stanley - Brokerage Accounts | 2024-06-30 | 32 M | Van Eck Associates Corporation | 2024-06-30 | 11.7 M |
Ares Capital Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change In Cash | (120M) | 150M | 160M | (149M) | 227M | 238.4M | |
| Free Cash Flow | (1.2B) | (557M) | (2.5B) | (1.4B) | 511M | 536.6M | |
| Other Non Cash Items | (2.0B) | (1.1B) | (4.3B) | (1.8B) | (1.1B) | (1.1B) | |
| Net Income | 793M | 484M | 1.6B | 600M | 1.5B | 1.6B | |
| End Period Cash Flow | 176M | 326M | 486M | 337M | 564M | 592.2M | |
| Dividends Paid | 656M | 694M | 679M | 912M | 1.0B | 1.1B | |
| Net Borrowings | 1.8B | 1.5B | 2.6B | 1.1B | 1.3B | 1.1B | |
| Change To Netincome | (2.0B) | (1.2B) | (4.3B) | 78M | 70.2M | 73.7M |
Ares Capital Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Ares Capital or Capital Markets sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Ares Capital's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Ares stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.05 | |
β | Beta against Dow Jones | 0.54 | |
σ | Overall volatility | 0.67 | |
Ir | Information ratio | 0.02 |
Ares Capital Volatility Alert
Ares Capital exhibits relatively low volatility with skewness of 0.17 and kurtosis of 0.72. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Ares Capital's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Ares Capital's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Ares Capital Fundamentals Vs Peers
Comparing Ares Capital's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Ares Capital's direct or indirect competition across all of the common fundamentals between Ares Capital and the related equities. This way, we can detect undervalued stocks with similar characteristics as Ares Capital or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Ares Capital's fundamental indicators could also be used in its relative valuation, which is a method of valuing Ares Capital by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Ares Capital to competition |
| Fundamentals | Ares Capital | Peer Average |
| Return On Equity | 0.13 | -0.31 |
| Return On Asset | 0.0536 | -0.14 |
| Profit Margin | 0.54 % | (1.27) % |
| Operating Margin | 0.73 % | (5.51) % |
| Current Valuation | 27.16 B | 16.62 B |
| Shares Outstanding | 646.08 M | 571.82 M |
| Shares Owned By Insiders | 0.53 % | 10.09 % |
| Shares Owned By Institutions | 29.93 % | 39.21 % |
| Number Of Shares Shorted | 17.44 M | 4.71 M |
| Price To Earning | 5.58 X | 28.72 X |
| Price To Book | 1.10 X | 9.51 X |
| Price To Sales | 4.79 X | 11.42 X |
| Revenue | 2.08 B | 9.43 B |
| Gross Profit | 2.1 B | 27.38 B |
| EBITDA | 1.29 B | 3.9 B |
| Net Income | 1.52 B | 570.98 M |
| Cash And Equivalents | 257 M | 2.7 B |
| Cash Per Share | 0.51 X | 5.01 X |
| Total Debt | 11.94 B | 5.32 B |
| Debt To Equity | 1.27 % | 48.70 % |
| Current Ratio | 0.95 X | 2.16 X |
| Book Value Per Share | 19.77 X | 1.93 K |
| Cash Flow From Operations | 511 M | 971.22 M |
| Short Ratio | 6.67 X | 4.00 X |
| Earnings Per Share | 2.60 X | 3.12 X |
| Price To Earnings To Growth | 3.95 X | 4.89 X |
| Target Price | 22.46 | |
| Beta | 1.05 | -0.15 |
| Market Capitalization | 14.08 B | 19.03 B |
| Total Asset | 23.8 B | 29.47 B |
| Retained Earnings | 462 M | 9.33 B |
| Annual Yield | 0.09 % | |
| Five Year Return | 9.16 % |
Note: Acquisition by Bartlett Steve of 200 shares of Ares Capital at 14.2 subject to Rule 16b-3 [view details]
Ares Capital Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Ares . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
| Accumulation Distribution | 30087.22 | |||
| Daily Balance Of Power | (0.07) | |||
| Rate Of Daily Change | 1.0 | |||
| Day Median Price | 21.8 | |||
| Day Typical Price | 21.79 | |||
| Price Action Indicator | (0.02) | |||
| Period Momentum Indicator | (0.01) | |||
| Relative Strength Index | 53.07 |
About Ares Capital Buy or Sell Advice
When is the right time to buy or sell Ares Capital? Buying financial instruments such as Ares Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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Check out Ares Capital Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. For information on how to trade Ares Stock refer to our How to Trade Ares Stock guide.You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Is Asset Management & Custody Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Ares Capital. If investors know Ares will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Ares Capital listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.28) | Dividend Share 1.92 | Earnings Share 2.6 | Revenue Per Share 4.868 | Quarterly Revenue Growth 0.183 |
The market value of Ares Capital is measured differently than its book value, which is the value of Ares that is recorded on the company's balance sheet. Investors also form their own opinion of Ares Capital's value that differs from its market value or its book value, called intrinsic value, which is Ares Capital's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Ares Capital's market value can be influenced by many factors that don't directly affect Ares Capital's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Ares Capital's value and its price as these two are different measures arrived at by different means. Investors typically determine if Ares Capital is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ares Capital's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.